Our Financial media aka ticker channels are in love with the Indian economy. No clue why but most of our commentators seem to think that India is a very attractive market in which to invest. I have nothing against the Indian economy, but the American, European, investor surely has better options. In a country where the car sales (and other sales) is stagnating or falling, increasing petrol prices is stupid, but then it may be putting a smile on the poorest man on the street. I do not know, but that is what this gov believes.

I used to be asked over the past 2 years…”do you think Namo will come back” and “what will happen if Namo does not come back”. I used to have a counter question : “what if Namo comes back and does NOTHING for the market”? None of us had an answer for that. Remember the 1996 World cup Semifinal? We had Sri Lanka at 0-2 and then did not have an answer for Arvinda’s batting. Similarly we now have Namo, and his cabinet..but no sensible ideas about what to do with the economy. The Niti Aayog chief says “we should all sacrifice for the 5 Trillion US $ economy. Great.

The richest of the rich are to be taxed at a higher rate. Great. Heard of Double Tax Avoidance Agreement? do you think the real rich will want to keep the money in India? Can they not bring it in as FII investing and pay LESS TAX, but have the money $ designated? will somebody explain please? They are not salaried guys who will pay all the taxes and crib. They are businessmen who know how to play the international tax market, not just the Indian tax market. Wake up Nirmala.

Here are some ideas that will not work…

  1. In 2014 when Namo came to power I sold all my psu positions – I was sure Namo and team are not likely to do anything useful for PSU revival.
  2. Nothing will happen to PSU banks – the skin in the game will not happen, corruption will be rampant, but we will talk about ‘new beginning’.
  3. PSU will continue to be a drain on your portfolio – I have zero exposure to psu
  4. The real rich will not pay tax at 42%+ gst in their lives. They will know how to manage their money.
  5. We will end up paying 33% tax, and 18% GST without getting ANYTHING in return.
  6. The middle class under Namo is like the Muslims under Congress. You have no choice, and you will get nothing for voting for them.
  7. Most of Namo’s thoughts will be for the poorest of the poor and if you get anything, that is sheer luck or an accident.
  8. Migration is increasing – and Namo will be happy with the middle class going out.
  9. Big talk will happen towards higher education, but nothing will happen.
  10. Smart city will be smart talk.
  11. ………….and so on………

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  1. Fully Agree with the thoughts. Point no. 8 is really poignant. Migration is happening at a very fast speed. In my state Punjab, all so called upper cast middle class people want their kids to settle in Canada or Australia as there is no future for this class in India due to reservation and government policies. A new trend is emerging, to send kids to Canada after 10+2 for studies and apply for PR. The thinking is ” Why spend 15-20 Lacs on a stupid Engineering degree when there are no opportunities later. At the same cost, you can get your kid educated in Canada and settle there and bargain for better future. I know at least 6 kids of relatives who have gone abroad for graduation in last two years.
    Not only businessmen but Middle Class is also smarter than what this government thinks.

  2. Completely agree. I have been fuming over the last few budgets. 35-43% direct tax + indirect taxes totals to 50-60% of annual earnings, for which the taxpayers get zilch in return. In his greed to become the Messiah of the downtrodden, Namo has killed the goose which lays the golden eggs.

  3. Subra,
    Pl tell us your ideas on settling in another country,
    Most of my friends and cousins are settled in western countries in the last 2 decades.
    I never planned to emigrate all these years , but once in a while I get pissed off…

    Pl give me and the others some realistic idea!

  4. Realizing the impact of 20% IT plus 18% GST which I am informed entails earning 149 to spend 100
    I am amazed you could foresee ( ?!!) psu will not be be His focus . Amazing

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